tv Real Money With Ali Velshi Al Jazeera January 14, 2014 7:00pm-7:31pm EST
freezing. your headlines are up next. >> this is al jazeera america live from new york city. i'm tony harris is a book at today's top stories. egyptians went to the polls to approve a new constitution that would solidify the military's control over the government. supporters of morsi are boycotting the two-day vote. and new jersey governor chris christie spoke briefly about recent scandals about the his state of the state, he speaks about what appears to be a politically motivated traffic closure. restaurant reopen in downtown whic west virginia. many have been without tap water
for days after a chemical spill into a local river. 38% of the 300,000 residents effected are permitted to use the tap water again. it could be days before the entire system is back online. a presidential review panel has given its recommendations for the nsa program to congress. they testified about a number of important changes including how the national security agency collects data. president obama will unveil his plans for the intelligence agency on monday. next we have more with ali velshi from the detroit auto show. >> reporter: all revved up at the detroit auto show. i'll talk to the top boss at toyota about bringing sexy back to car showrooms. and also what the busiest bridge in the u.s. says about the big three automaker and it's
neighbor to the north. and we never stop to ask directions, and there is an app for that. >> you are the most important part of the show. join our live conversation for the next half hour on twitter at aj real money and facebook.com and a.j. real money. the heart of an industry that has come back strong since chrysler and general motors filed for bankruptcy in 2009, and when ford mortgaged everything that it owned to survive back in 2005. today we've got more evidence of this industry's return to
health. general motors sold 9.7 million vehicles worldwide last year, up 4% from 2012. strong sales in china and the u.s. fuel gains to offset weak innocence europe and self america. g.m.'s sold year sent its stock up 42% in 2013. late today the automaker said it will start paying a dividend on its stock again something it stopped doing in 2008. next month the company is expected to report it's 16th consecutive quarter of profits. now the health of g.m. and the auto industry has a lot to do with the overall strength of the u.s. economy an. retail sales rose .2, and it was dragged down by a 1.8% decline in auto sales. december retail sales jumped .7
of one percent. it's a bit of a mixed bag especially if you're an automaker or work for one. we already knew that december was flat for car companies mostly because the cold weather kept some people out of showrooms. but it was a solid year for g.m. and the industry. the question for automakers coming off the best sales year since 2007 is what happens next. the answer to that has a lot to do with the strength of the u.s. job market and consumer confidence and how fast interest rates move higher. rising u.s. interest rates could also have an effect on the economy here in detroit. that's because it's sending the dollar up against canada's currency. that matters for detroit which sits on the detroit river between the united states and canada. detroit is an international trade hub linking both countries with the rest of the world and canadian's decline against the
u.s. dollar has negative implication force american businesses for detroit and beyond. americans and canadians regularly cross the international border to visit each other and to shop. >> believe me, the timing between the two is generous on both sides. they come here and we go there. >> visit tours detroit has been bolstered by a strong canadian dollar. >> we do get a lot of canadian traffic that come here and spend the day here, which is great. they make it an outing. >> but that could change. the canadian dollar is weakened some 10% in the last year against the u.s. dollar with many predicting that it will weaken further in 2014. in border cities across the u.s.-canada boundary think seattle or buffalo as well as detroit, american retailers could lose their competitive edge. >> the weakened canadian dollar is not going to go as far in the
sit when you come to shop. it may cause a drop off in visitors. >> but more is at stake. a huge proportion of trade between the u.s. and canada is routed through detroit. from freight on trains to goods loaded on to trucks. >> when you see the trucks going from the united states into canada over the ambassador bridge this, is the busiest border crossing. it'sest made 25% of all trade between canada and the united states goes over this bridge. and detroit and windsor, canada. they buy supplies from manufacturers on both sides of the river. but which country gains the most from this trade across the border often has to do with which countries has the lower currency. >> if the canadian doctor continues to decline it will r e
increase-- >> there is a real sense that detroit is turning a corner. >> this is our chance to kind of rise from the ashes and be stronger than ever. >> accept this weaker canadian dollar on the horizon means the city and michigan city will lose out on trade with its neighbor along the river, and americans go into canada to shop and do business. >> the city of detroit has far bigger problems. it declare bankruptcy and has debt, including billions in pension debt owed to retired city workers. we covered that store. the auto industry rebound will only do so much for this city. it creates a buds by offering millions to shore up the pension and the pensions and prevent art that is owned by the detroit institute of art being auctioned
off. studying the detroit economy for more than 20 years, and he says that the auto show is just one cattlcatalyst among many. it is bringing millions to local business, and we speak to a manager, you detroiters are very proud of detroit. the outside world looks at detroit, particularly the city and says what a mess. you guys say maybe it's hit bottom, maybe it's going to be okay. >> this week is a great example. you said it $390 million in total economic activity in the detroit area. that's 50% better than what most super bowls generate. this will be up 10% and this is a microcosm of the improvement that we're beginning to see in detroit. i'm an investor. i think detroit is a low discounted value stock cheap stocks can stay cheap for an
awfully long time, but importantly in 2014 there is more catalysts to see detroit begin a rebound after 30 years of secular decline. >> give me the glass half full look because the glass half empty look says that things can't get better. >> when i look at job and income growth compared to the u.s. for now, 12 to 13 straight quarters we've been growing faster than the u.s. has. that's one example. we still have our problems. our debt is rated a triple c minus from standard & poor's. we have a long way to go, but the catalysts are there for an improvement, and this week is absolutely a tip off to what can happen. >> there is one trick here, you said metropolitan detroit. when you take the city out some of the surrounding areas are
doing quite well, and some might argue there is a housing bubble going on in some of the detroit suburbs which are some of the nicest suburbs in the country. >> there are. >> there are many who are trying to make this city work. what is it going to take to make downtown detroit not look the way it does with entirely empty buildings where the windows even have been removed. >> anecdotally demand outstripping supply. albeit supply is quite strained. the city as a whole is beginning to rebound, no suburban area can grow forever withou without a vl downtown core, and detroit is beginning to demonstrate that. we went through 30 years of tough times in detroit. too high of tax burden, it was six times higher than the average michigan city. try to compete in that environment. that needs to steadily improve.
the trade pictures are improving. the dollar will continue to weaken. ironically that's positive for trade and from detroit to canada. that is the seed of catalyst where jobs and growth will continue. >> we see artists and creators come, will it look like an austin or a more industrial city. >> austin may be stretching it. columbus, ohio, grand rapids, michigan, chicago, entrepreneurial risk tasks because the areas are depressed, the price is right to be a buyer, and that's one of the solutions along with a competitive business environment that will be the seeds of detroit recovering after 40 years of secular decline. >> detroiters, it's harder to take the hope out of a detroiter
than most people. you people are hearty. >> after watching the auto industry i've never seen wall street di disenamorred than they are. the stock up 55%. for this stage of the business cycle, i have not seen that in 25 years. >> that's optimistic. that's the theme of what's been going on. >> that's from wall street. >> many of the innovations at the auto show are years in the making. we'll talk to ceo jim lentz about the cars of the future. he'll tell us what people will want to drive down the road. and the high tech for the middle class car buyer. what you wear and what you buy are in perfect sync at last. we'll continue that when "real money" returns from the detroit auto show. keep it right here.
>> we spoke with toyota north america ceo about expectations of 2014 and the future of toyota vehicles which he said combines great gas mileage with sexy styling and are just fun to drive. >> this is the ft 1. we went to our designers, and we said forget about platforms and all of that. if you could design the ultimate sports car, what would it look like? and this is what the passionate designers came up with. >> it does not look like it was
designed by bean counters. one always wonders, what does it take to get a car like that? what happens to a car like that? does it every get out on the lots, the streets? >> some do. one vehicle that i say we put glasses and a mustache on it, and then six months later you see it gone. and then the second concept is a vehicle like this. we try to push the envelope get reaction from consumers and see if it's something that we should bring to market or not. >> but that's not likely to be a car that is mass-marketed car but someone who wants a sports car. >> which brings me to my next question, one of the things about this particular auto show is that it feels like it brought sexy back. >> yes, part of this is we talked about it earlier, the last four years we saw this great recovery in the auto industry, but we weren't sure if it was real. we were looking over our shoulders to make sure that
today it's the real deal. as a result people are investing, they're investing in displays and concepts, and that's the excitement you see and feel at the show today. >> folks are always coming after the stuff, you do it at toyota. everybody finds the car that they do really well, and then introduce something else to compete. chrysler is bringing in the 200 now. that was tight' toyota's statemo the buyer. >> we have to understand the buyer and listen closely to them, and understand what they would want four to five years down the road because it's a four-year product cycle for us. we have to anticipate wha not wt they want today but what they'll want in the future. if people are following our direction they're always a generation behind. >> what do you think people want, what am i going to want four to five years from now? >> people will want
environmental cars that are great on gas mileage and sexy. that's just the price today. people want all that, but they want to have fun to drive and high mileage. >> when you look at a world that is so influenced by people who want environmental cars, something that is environmentally friendly, something green, what does it do for toyota in terms of earning that badge? >> i think it legitimatizes the high-energy driving. we blowly sold 6 million hybrid vehicles. in japan 50% of cars sold in the normal market are hybrid cars today. they're far advanced from what the u.s. marketplace is. here 15% of what we sell are hybrids and we have 60% of the
marketplace. >> there is fantastic luxury cars there. but buying a new car is still aspirational. >> the last few years has really done it. what do you see? that's got to be part of your projection. are there going to be people in that position to buy these mid-level cars? >> quite frankly part of what has happened is we have now great styling in cars like corolla so you don't need to buy a luxury car to get a great quality car that has great styling, handling and technology. that's the big, big difference. we're able to attract people into the toyota brand or scion brand any time they're moving up. but in the meantime i am offer them what you could have received in a luxury car five or six years ago in a toyota car.
>> a lot of optimism, the american car makers all have something going on that's interesting. what do you think about the health of the car manufacturing in 2014. >> i think it's really good. some are questioning my forecast for next year. i think the number is going to be close to 16 million. >> more cars sold in 2014 than 2013? >> yes, but the rate is growth is going to start to taper. part that have is we've satisfied a lot of pent up demand in the last couple of years. we're going to rely on the strength of a growing economy to increase buying in the wrong run that's good for the industry. >> appreciate it. >> that's toyota north america chief executive. forget your keys, how you start up your car with a pair of glasses, and cars that drive themselves. that's "real money" at the
>> welcome back to al jazeera america from the detroit auto show. from the detroit auto show. your pretty excited by this show. we're at the hyundai show room at the detroit auto show. the hyundai genesis. a fantastic car. we're not going to be able to talk about it because we're talking about this neat technology. i'll take my glasses off and put google glass on. this is the first time i've done this. tell me about this. >> we're seeing an explosion in wearables. >> whether it's a glass or watch. >> yes. what hyundai did, it has a
google glass concept. it allows you to do things through google glass. >> you you don't need to be close to your car. >> for example, you can start your car and do a remote start. >> here it's cold, i walked ten minutes to my car, and i could have had it started. >> yes, and you could say okay, i need to find a restaurant downtown. i could say, google glass, i want to find this restaurant. it will send the destination from your phone to your car. >> and it tells you with an appointment from your phone, it will tell you how long it will take to get there. >> exactly. so you're not sitting on your phone finding a restaurant, starting a car o doing it inside the car, the navigation system. you can say glass, find the destination, you can say start my car, and it's warmed up when you get into it. >> i find myself using this vehicle help maintenance.
for instance, it gives a diagnostic. >> that's right. it is an app that tells you what is going on. for example, the license plate bulb burned out. okay, i know that, not a big deal, but if you want to schedule service you can press a button, and it shows you where the closest service center is. and it will tell you when to rotate your tires, engine oil light all of these things. >> some of which were only available on higher end vehicles. what we're seeing now is this technology trickling down to less expensive vehicles. we're in the chevy impala, it's not the least expensive. >> but it's not the cadillac. >> that's right. a lot of this technology is coming to very affordable cars. g.m. chose to launch this on chevy as opposed to a luxury
brand like cadillac. they'll have this available this summer. the hot spot in the car. the apps. we're going to see a lot more of this. a lot of automakers running apps. they're run to go third party developers just like apple and google did with smart phones. we'll see all kinds of cool apps, things that we can't imagine yet you'll be able to do from the dashboard. >> you and i maybe more than people at the auto show are very excited about economist cars. cars that to varying degrees drive themselves. nissan is the first who say they will have one of these for sale. >> a lot of automakers say they have ought automake autotonomu.
>> and they're going to come in very fast. cameras and censors sensors, the layering it, cameras, radar sensors to keep the car in its lane and keep it from crashing into the car in front of it. we'll see more and more of that leading up to autonomous driving. >> in japan they can use autonomous cars, and it can sense how far you are from the car in front of you, it can park, identify a stop sign, make a turn. >> the thing is a lot of people say i don't want the car to take over for me. i'm a good driver. every thinks they're a good driver, but this has so many
benefits from less accidents, fuel saving, and a lot of people, they don't want to drive. do you enjoy your daily commute? it would be nice to let go of the real and have the car drive for you. >> one of the things that regulatory environment does not support this. generally governments don't know what to make of it. sure companies don't. most people, they hear autonomous driving, wow, they think that's dangerous. >> right. one, it's a legal issue, lawyers will have to figure it out, insurance companies, two, consumer reluctance. people have to get used to it. once people get used to it and they don't have to deal with traffic jams then it's really going to take off. six years, 2002, a ca 2020, thel
be on the market. >> what is one feature you would like to see in your car. >> sound deadening zone driver to ignore spouse kids, and other distractions. patrick tweets, i would like to see a radio with digital audio recording so you can see what you missed on radio. they have apps for that. but good idea. leave us comment on facebook. finally as we pack up our gear so the public can get in and look at beautiful cars on saturday, i've gone to this auto show in detroit more times than i can count. it was in 2005 when ford anouned 40,000 layoffs. in 2009 the show went on while the government was deciding whether or not to bail out the industry. and in the ensuing years auto making towns and families have watched improvements on sales with a cautious eye, suspicious of whether or not they would sustain, but sustain they did.
to be fair the economy recovering has helped and the fact that regular wage earners could once again get car loans. behind all of this are the hundreds of thousands of auto workers in every state who kept the faith and never stopped believing about the still and the competitiveness of the worker. they knew in this global market that americans would not just buy american for the sake of it. americaamericans have taken the american industry to the top. this is our show for today. i'm ali velshi. thanks for joining us. >> talking about the good, the bad and the ugly when it comes to baby boomers.
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